Budget Chinese carrier Spring Airlines mulls Hong Kong listing: sources

The airline has been more consistent in posting profit than the country’s main state-run carriers

Chinese budget carrier Spring Airlines is considering a listing in Hong Kong, possibly next year, people familiar with the matter said.

The Shanghai-headquartered airline has picked JPMorgan Chase and UBS Group to work on the share sale, according to the people, who asked not to be identified because the information is private. It could raise several hundred million US dollars, they said.

Deliberations are ongoing and details such as the size and timing of the potential offering have not been finalised, the people said.

Spring Airlines did not respond to requests for comment outside of office hours, with mainland Chinese markets and companies closed for the holidays. JPMorgan and UBS declined to comment.

Spring Airlines, which made its inaugural flight two decades ago, already trades in Shanghai, where its shares have fallen about 7 per cent this year, compared with a 16 per cent gain by the Shanghai Composite Index. The airline’s market capitalisation is 52.3 billion yuan (S$9.5 billion).

Spring Airlines has 134 aircraft flying more than 190 domestic routes and over 50 international and regional routes in Asia, its website shows. The company’s net income totalled 1.17 billion yuan in the first half, down 14 per cent from a year earlier. Revenue rose 4.3 per cent to 10.3 billion yuan.

SEE ALSO

Investors are showing renewed interest in Chinese companies, prompting many to consider share sales in Hong Kong to raise funds to finance their growth.

Spring Airlines has been more consistent in posting profit than the country’s main state-run carriers – Air China, China Eastern Airlines and China Southern Airlines. Those three are listed in both Shanghai and Hong Kong. BLOOMBERG